Connector 2000 defaults on 1998 revenue bonds

By Caroline Salls

Pittsburgh, Jan. 28 - Connector 2000 Association, Inc. is in default of a revenue covenant under the indenture for its 1998 Senior Current Interest Toll Road Revenue Bonds, according to a notice from indenture trustee U.S. Bank NA.

According to the notice, Connector failed to meet the requirements of the revenue covenant for the 2005, 2006 and 2007 fiscal years. The default kicked in after the association failed to comply with the terms of the covenant for 36 straight months.

The indenture trustee said it is still deciding what actions to take in connection with the default.

U.S. Bank said the indenture trustee for Connector 2000's standby 1998 subordinate bonds has also been notified of the default. Standby co-trustee HSBC Bank would be responsible for acting on any related default under the subordinate bonds.

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